Federal Register / Vol. 88, No. 238 / Wednesday, December 13, 2023 / Notices 86411 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3Cboe Silexx, Inc. (‘‘Cboe Silexx’’), which is a 

subsidiary of the Exchange’s parent, Cboe Global 

Markets, Inc., offers the Silexx platform. 

4See Securities Exchange Act Release No. 87028 

(September 19, 2019) 84 FR 50529 (September 25, 

2019) (SR–CBOE–2019–061). Only Users authorized 

for direct access and who are approved to trade 

FLEX Options may trade FLEX Options via Cboe 

Silexx. Only authorized Users and associated 

persons of Users may establish connectivity to and 

directly access the Exchange, pursuant to Rule 5.5 

and the Exchange’s technical specifications. 

5See Securities Exchange Act Release No. 88741 

(April 24, 2020) 85 FR 24045 (April 30, 2020) (SR– 

CBOE–2020–040). Only authorized Users and 

associated persons of Users may establish 

connectivity to and directly access the Exchange, 

pursuant to Rule 5.5 and the Exchange’s technical 

specifications. 

6See Securities Exchange Release No. 89285 (July 

10, 2020) 85 FR 43284 (July 16, 2020) (SR–CBOE– 

2020–062). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99111; File No. SR–CBOE– 

2023–064] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Fees for the 

Cboe Silexx Platform 

December 7, 2023. 

Pursuant to section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on December 

1, 2023, Cboe Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘Cboe Options’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Cboe Exchange, Inc. (the ‘‘Exchange’’ 

or ‘‘Cboe Options’’) proposes to amend 

fees for the Cboe Silexx platform. The 

text of the proposed rule change is 

provided in Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://www.cboe.com/ 

AboutCBOE/CBOELegal

RegulatoryHome.aspx), at the 

Exchange’s Office of the Secretary, and 

at the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend fees 

for the Cboe Silexx platform (‘‘Silexx 

platform’’),3 effective December 1, 2023. 

By way of background, the Silexx 

platform consists of a ‘‘front-end’’ order 

entry and management trading platform 

(also referred to as the ‘‘Silexx 

terminal’’) for listed stocks and options 

that supports both simple and complex 

orders, and a ‘‘back-end’’ platform 

which provides a connection to the 

infrastructure network. From the Silexx 

platform (i.e., the collective front-end 

and back-end platform), a Silexx user 

has the capability to send option orders 

to U.S. options exchanges, send stock 

orders to U.S. stock exchanges (and 

other trading centers), input parameters 

to control the size, timing, and other 

variables of their trades, and also 

includes access to real-time options and 

stock market data, as well as access to 

certain historical data. The Silexx 

platform is designed so that a user may 

enter orders into the platform to send to 

an executing broker (including Trading 

Permit Holders (‘‘TPHs’’)) of its choice 

with connectivity to the platform, which 

broker will then send the orders to Cboe 

Options (if the broker is a TPH) or other 

U.S. exchanges (and trading centers) in 

accordance with the user’s instructions. 

The Silexx front-end and back-end 

platforms are a software application that 

is installed locally on a user’s desktop. 

Silexx grants users licenses to use the 

platform, and a firm or individual does 

not need to be a TPH to license the 

platform. 

The Exchange offers several versions 

of its Silexx platform. Originally, the 

Exchange offered the following versions 

of the Silexx platform: Basic, Pro, SellSide, Pro Plus Risk and Buy-Side 

Manager (‘‘Legacy Platforms’’). The 

Legacy Platforms are designed so that a 

User may enter orders into the platform 

to send to the executing broker, 

including TPHs, of its choice with 

connectivity to the platform. The 

executing broker can then send orders to 

Cboe Options (if the broker-dealer is a 

TPH) or other U.S. exchanges (and 

trading centers) in accordance with the 

User’s instructions. Users cannot 

directly route orders through any of the 

Legacy Platforms to an exchange or 

trading center nor is the platform 

integrated into or directly connected to 

Cboe Option’s System. In 2019, the 

Exchange made available a new version 

of the Silexx platform, Silexx FLEX, 

which supports the trading of FLEX 

Options and allows authorized Users 

with direct access to the Exchange to 

establish connectivity and submit orders 

directly to the Exchange.4 In 2020, the 

Exchange made an additional version of 

the Silexx platform available, Cboe 

Silexx, which supports the trading of 

non-FLEX Options and allows 

authorized Users with direct access to 

the Exchange to establish connectivity 

and submit orders directly to the 

Exchange.5 Cboe Silexx is essentially 

the same platform as Silexx FLEX, with 

the same applicable functionality, 

except that it additionally supports nonFLEX trading. Use of the Silexx platform 

is completely optional. 

CAT Fees 

The Exchange has adopted a fee for 

CAT Files.6 Particularly, Silexx makes 

Consolidated Audit Trail (‘‘CAT’’)- 

formatted files available to Silexx users 

for orders processed by the user via 

Silexx applications. Users may also 

elect to have Silexx, which is a CAT 

Reporter Agent, submit these files to 

CAT on their behalf. The Exchange 

assesses a monthly fee of $250 per 

trading firm for CAT Files, payable by 

the trading firm for CAT files related to 

its own and its customers’ executions. 

The Exchange proposes to increase the 

monthly fee for CAT Files for all Silexx 

users, from $250 per month to $500 per 

month. 

Data Management Fee 

The Exchange also proposes to 

introduce a Data Management fee for 

users of Legacy Platforms. This fee will 

cover the administrative costs of 

supporting and maintaining data feeds a 

Legacy user may have, as well as the 

cost of additional data provided in the 

terminal such as earnings and 

dividends. The Exchange proposes to 

assess $20 per month per Login ID. 


khammond on DSKJM1Z7X2PROD with NOTICES
86412 Federal Register / Vol. 88, No. 238 / Wednesday, December 13, 2023 / Notices 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78f(b)(5). 

9 Id. 

10See Securities Exchange Release No. 98722 

(October 11, 2023) 88 FR 71619 (October 17, 2023) 

(SR–CBOE–2023–060). Only authorized Users and 

associated persons of Users will continue to be able 

to establish connectivity to and directly access the 

Exchange, pursuant to Rule 5.5 and the Exchange’s 

technical specifications. Unauthorized Users will 

not be able to connect directly to the Exchange. The 

new Cboe Silexx platform will function in the same 

manner as the Legacy Platforms versions currently 

available to Users: it will be completely voluntary; 

orders entered through the platform will receive no 

preferential treatment as compared to orders 

electronically sent to Cboe Options in any other 

manner; orders entered through the platform will be 

subject to current trading rules in the same manner 

as all other orders sent to the Exchange, which is 

the same as orders that are sent through the 

Exchange’s System today; the Exchange’s System 

will not distinguish between orders sent from 

Silexx and orders sent in any other manner; and 

Silexx will provide technical support, maintenance 

and user training for the new platform version upon 

the same terms and conditions for all Users. The 

Exchange plans to decommission the Legacy 

Platforms at a future to-be-determined date, at 

which time the Legacy Platforms will be 

unavailable to users. 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f). 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

section 6(b) of the Act.7 Specifically, the 

Exchange believes the proposed rule 

change is consistent with the section 

6(b)(5) 8 requirements that the rules of 

an exchange be designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, to remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

Additionally, the Exchange believes the 

proposed rule change is consistent with 

the section 6(b)(5) 9 requirement that the 

rules of an exchange not be designed to 

permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

Additionally, the Exchange also believes 

the proposed rule change is consistent 

with section 6(b)(4) of the Act, which 

requires that Exchange rules provide for 

the equitable allocation of reasonable 

dues, fees, and other charges among its 

Trading Permit Holders and other 

persons using its facilities. 

In particular, the Exchange believes 

the proposed monthly fee for CAT Files 

is reasonable, equitable, and not 

unfairly discriminatory because the 

CAT Files fee will apply to all users that 

elect to receive CAT Files. Further, the 

Exchange notes receipt of the CAT Files 

is completely voluntary and not 

compulsory. Indeed, all users of Silexx 

can extract the necessary data from 

Silexx to create a CAT report themselves 

to comply with their reporting 

obligations even if they choose not to 

purchase the optional CAT Files. The 

Exchange believes the CAT File fee, as 

proposed, remains reasonable, as the 

moderate increase is the first increase to 

the fee since its introduction in 2020. 

The Exchange also believes the 

proposed Data Management fee is 

reasonable, equitable, and not unfairly 

discriminatory because the fee will 

apply to all users of the Legacy 

Platforms. Additionally, the Exchange 

believes the proposed fee is reasonable 

as it accounts for administrative costs 

that Cboe Silexx is incurring, but not 

charging users, to maintain support for 

Legacy Platforms while Cboe Silexx 

transitions away from the Legacy 

Platforms. Further, the Exchange 

believes the proposed rule change to 

waive the Data Management fee for 

Silexx FLEX and Cboe Silexx is 

reasonable because users of these newer 

platforms would do not need to receive 

the support for older platforms. As 

noted in previous filings, the Exchange 

is in the process of transitioning the 

Legacy Platforms to the current version 

of Cboe Silexx and Silexx FLEX.10 The 

Exchange believes not assessing these 

fees for Silexx FLEX and Cboe Silexx 

also serves as an incentive to market 

participants to transition to the current 

version of Cboe Silexx from the Legacy 

Platforms. 

Finally, the Exchange notes that use 

of the platform is discretionary and not 

compulsory, as users can choose to 

route orders, including to Cboe Options, 

without the use of the platform. The 

Exchange makes the platform available 

as a convenience to market participants, 

who will continue to have the option to 

use any order entry and management 

system available in the marketplace to 

send orders to the Exchange and other 

exchanges; the platform is merely an 

alternative offered by the Exchange. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed change will not impose any 

burden on intramarket competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act 

because the proposed rule change will 

apply to similarly situated participants 

uniformly, as described in detail above. 

The Exchange does not believe that 

the proposed rule changes will impose 

any burden on intermarket competition 

that is not necessary or appropriate in 

furtherance of the purposes of the Act 

because the proposed change applies 

only to Cboe Options. Additionally, 

Cboe Silexx is similar to types of 

products that are widely available 

throughout the industry, including from 

some exchanges, at similar prices. To 

the extent that the proposed changes 

make Cboe Options a more attractive 

marketplace for market participants at 

other exchanges, such market 

participants are welcome to become 

Cboe Options market participants. 

Further, the proposed rule change 

relates to an optional platform. As 

discussed, the use of the platform 

continues to be completely voluntary 

and market participants will continue to 

have the flexibility to use any entry and 

management tool that is proprietary or 

from third-party vendors, and/or market 

participants may choose any executing 

brokers to enter their orders. The Cboe 

Silexx platform is not an exclusive 

means of trading, and if market 

participants believe that other products, 

vendors, front-end builds, etc. available 

in the marketplace are more beneficial 

than Cboe Silexx, they may simply use 

those products instead, including for 

routing orders to the Exchange 

(indirectly or directly if they are 

authorized Users). Use of the 

functionality is completely voluntary. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to section 19(b)(3)(A) 

of the Act 11 and paragraph (f) of Rule 

19b–4 12 thereunder. At any time within 

60 days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 


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Federal Register / Vol. 88, No. 238 / Wednesday, December 13, 2023 / Notices 86413 

13 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A)(iii). 

4 17 CFR 240.19b–4(f)(6). 

5See Securities Exchange Act Release No. 98917 

(November 13, 2023), 88 FR 80361 (November 17, 

2023) (SR–MIAX–2023–36) (Order Approving a 

Proposed Rule Change To Amend Exchange Rule 

404, Series of Option Contracts Open for Trading). 

6See Rule 4.5, Interpretation and Policy .04. 

7See Rule 4.5, Interpretation and Policy .01(a)(1). 

Commission will institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

CBOE–2023–064 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to file 

number SR–CBOE–2023–064. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (https://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–CBOE–2023–064 and should be 

submitted on or before January 3, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–27273 Filed 12–12–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99113; File No. SR–CBOE– 

2023–065] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Adopt a Low Priced 

Stock Strike Price Interval Program 

December 7, 2023. 

Pursuant to section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on December 

4, 2023, Cboe Exchange, Inc. 

(‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange filed the 

proposal as a ‘‘non-controversial’’ 

proposed rule change pursuant to 

section 19(b)(3)(A)(iii) of the Act 3 and 

Rule 19b–4(f)(6) thereunder.4 The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Cboe Exchange, Inc. (the ‘‘Exchange’’ 

or ‘‘Cboe Options’’) proposes to adopt a 

Low Priced Stock Strike Price Interval 

Program. The text of the proposed rule 

change is provided in Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://www.cboe.com/ 

AboutCBOE/CBOELegal

RegulatoryHome.aspx), at the 

Exchange’s Office of the Secretary, and 

at the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

Rule 4.5. Miami International Securities 

Exchange, LLC (‘‘MIAX’’) recently 

received approval to amend its Rule 404 

to implement a new strike interval 

program for stocks that are priced less 

than $2.50 and have an average daily 

trading volume of at least 1,000,000 

shares per day for the 3 preceding 

calendar months.5 At this time, the 

Exchange proposes to adopt rules 

substantively identical to MIAX in 

proposed Rule 4.5, Interpretation and 

Policy .20 and amend Rule 4.5(d) to 

harmonize the table within that Rule to 

the proposed rule text. 

Currently, Rule 4.5 describes the 

process and procedures for listing and 

trading series of options on the 

Exchange. Rule 4.5, Interpretation and 

Policy .04 provides for a $2.50 Strike 

Price Program, where the Exchange may 

select up to 60 option classes on 

individual stocks for which the interval 

of strike prices will be $2.50 where the 

strike price is greater than $25 but less 

than $50.6 Rule 4.5, Interpretation and 

Policy .01 also provides for a $1 Strike 

Price Interval Program, where the 

interval between strike prices of series 

of options on individual stocks may be 

$1.00 or greater provided the strike 

price is $50.00 or less, but not less than 

$1.00.7 Additionally, Rule 4.5, 

Interpretation and Policy .01 provides 

for a ‘‘$0.50 Strike Program.’’ The 

interval of strike prices of series of 

options on individual stocks may be 

$0.50 or greater beginning at $0.50 

where the strike price is $5.50 or less, 

but only for options classes whose 

underlying security closed at or below 

$5.00 in its primary market on the 

previous trading day and which have 

national average daily volume that 


khammond on DSKJM1Z7X2PROD with NOTICES